How to Build an SMS Marketing Strategy from Scratch

An SMS marketing strategy is more about delivering timely, personal messages that actually get read rather than just blasting off quick texts.

And with open rates for these being far above email, SMS is one of the most effective ways to reach your audience (which is why it needs to be done right).

Our team has put together a guide that shows you why SMS belongs alongside email and social media in your marketing mix. We’ll also show you which metrics show how effective your strategy is.

Why SMS Deserves a Seat at the Strategy Table

Here’s why SMS marketing holds its own in any marketing strategy:

It’s Still One of the Most Reliable Channels

Text messages have a 98% open rate, so nearly everyone you text sees your message quickly. It doesn’t rely on app installs or algorithms to reach your audience.

Because of this direct line, SMS is perfect for urgency-driven campaigns. Need to promote a flash sale that ends tonight? A text ensures your customers actually see it in time.

It’s great for:

• Limited-time offers
• Last-minute event reminders
• Emergency alerts
• And more

Marketers often see response rates of 45% on texts (vs only ~6% via email), so people are much more engaged when they receive a text.

Consumers Prefer SMS If Done Right

Recipients on your text list chose to hear from you. That opt-in culture means your SMS subscribers are often your most interested customers. About 75% of mobile users are fine with receiving texts from brands they’ve opted into.

Not only are opt-in subscribers more receptive, they tend to act on texts at higher rates. And people answer text messages far faster (often within a few minutes), whereas an email might sit unread for hours or days.

People don’t mind getting appointment confirmations or back-in-stock alerts because they’re getting useful info rather than just a random whitepaper.

Brands Like Brooklinen and Olipop Scale With SMS

Plenty of brands have already made SMS a core part of their growth strategy. Take Brooklinen, the popular bedding and home goods retailer. They use automated SMS flows to recover abandoned carts and follow up post-purchase with helpful touches.

Then there’s OLIPOP. Their SMS subscribers are the first to know when a new flavor launches and often get early access before the general public.

Other direct-to-consumer companies like Chubbies (men’s apparel) and Dr. Squatch (grooming products) have also leaned into texting. Dr. Squatch, for instance, reports SMS is their #1 revenue channel for lifecycle marketing.

KPIs You Should Track for SMS Marketing Success

Like any marketing effort, you need to measure how your SMS campaigns are performing:

• Delivery Rate
• Open/Read Rate
• Click-Through Rate (CTR)
• Conversion Rate
• Response Rate
• Unsubscribe (Opt-Out) Rate
• List Growth Rate
• Revenue per Message (or per Subscriber)
• ROI

You’ll know what’s working and what’s not when you track these KPIs. For instance, a high delivery but low CTR might mean your content writing could be better. A great CTR but low conversion could signal your landing page isn’t good enough.

7 Key Steps to Build an SMS Marketing Strategy From Scratch

Ready to get started?

Set Clear Goals That Match Your Funnel

Know what you want to achieve with SMS. Are you looking to boost immediate sales? Increase customer retention and repeat purchases? Nurture leads into making that first conversion?

Then think of the typical funnel stages:

• Awareness
• Consideration
• Conversion
• Retention

Where will SMS have the biggest impact here? For instance, if cart abandonment is an issue at conversion, make recovering those carts via SMS a goal.

If repeat purchase rate is low, focus on retention texts (like post-purchase follow-ups) to boost it. SMS isn’t usually an acquisition (awareness) tool, since you need numbers opt-ins, but it can support awareness indirectly through referrals or event integrations.

Tying each SMS initiative to a funnel stage and outcome is key. Maybe you’ll have a goal for each stage:

• Awareness: Collect 500 new SMS opt-ins from new prospects (via outdoor advertising or social campaigns)
• Consideration: Nurture trial users with educational texts to increase trial-to-paid conversion
• Conversion: Drive extra eCommerce sales during promotions with text reminders
• Retention: Reduce churn by texting lapsed customers a win-back offer.

Build a Permission-Based List With Smart Opt-Ins

You can’t text people who haven’t given you permission (nor should you want to). So a crucial early step is building up a list of subscribers who genuinely want to hear from you. This is where “growing your list” and “opt-in strategy” come into play.

Start with your existing customers or audience: promote your SMS program to them and highlight the benefits. For instance, invite email subscribers to “Join our VIP Text List for exclusive deals and updates” (perhaps incentivizing with a one-time discount or freebie for signing up).

According to our research, about 57% of consumers are willing to share their number if they get something valuable in return. So make it worth their while! You could offer 10% off their next purchase or simply the promise of “be the first to know about product launches and secret sales” for SMS subscribers.

Integrate opt-ins everywhere it makes sense. On your website, add an option to sign up for texts (via pop-ups, checkout checkboxes, or a dedicated landing page). Promote the text list on social media (“Text JOIN to 12345 for instant 10% off!”).

Even offline customers can be invited. For example, use signage or receipts: e.g. “Text JOIN to 12345 for $5 off your next order.”

Always be transparent when people opt in; tell them what to expect (frequency, type of content) and make sure they really consent. (For instance, “Max 4 messages a month. Reply STOP to unsubscribe” in your sign-up form.)

It’s not just about following the law, but also about building trust. A smaller list of engaged, happy subscribers is far better than a huge list of people who never really wanted texts in the first place.

One pro tip: use keywords and short codes to simplify opt-ins. For example, a keyword like “SAVE10” that users can text to a short code number (like 51515) to instantly join and get a promo code. This is easy to promote and track.

Also, use any of your other channels to capture mobile numbers (e.g. your email signup form could ask for a phone number for SMS updates).

Segment Your Audience by Behavior and Lifecycle

Blasting everyone with the exact same message might be okay when your list is tiny and new. When it grows, you’ll have a far more diverse mix of subscribers:

• New leads
• First-time customers
• Multi-buyers
• Lapsed customers

So you want to tailor your texts to these segments, because it makes the texts more relevant to them which in turn gives you better results.

Define a few key segments and set up different automated flows or campaign lists for each if you’re just starting out. You can get more advanced with stuff like predictive segmentation later on.

Set Up Core Flows and Strategic Campaigns

Good SMS strategies have two components:

1. Automated flows (ongoing messages triggered by user actions or time delays)
2. One-off campaigns (manual or scheduled texts for specific promotions or events)

You’ll want to set up both, but we’d suggest starting with your core automated SMS flows. These run in the background once you configure them and engage with your subscribers based on their behaviors:

• Welcome Series: Triggered when someone opts in. For example, immediately send a “Thanks for joining! Here’s your 15% off code: WELCOME15” text.
• Abandoned Cart: “Forgot something? Your cart is waiting - complete your order now before it’s gone!” (with a link back). Many brands send a second cart text 24 hours later, sometimes adding a small discount to sweeten the deal.
• Post-Purchase Follow-ups: After an order, send an SMS confirming shipping (transactional, but can have a marketing touch: “Your order is on the way! BTW, here’s 10% off a related item: [link]”).
• Win-Back Series: For lapsed customers (no purchases in a while), an automated flow can check in after X months of silence: “We miss you! Here’s 20% off if you come back😊.” Sometimes just that little reminder brings people back.

These flows are important because you touch customers at critical moments but without much manual effort.

Then once your core flows are running, plan your broadcast campaigns. These are the one-to-many texts you send to a segment (or the whole list) for timely promotions or content. Some common campaign types:

• Product Launch Announcements: Text your list when you drop a new product or collection. This builds hype and drives quick traffic. (E.g. “Just dropped: Our Summer lineup is live! Check it out: [link]”).
• Flash Sales & Promotions: If you’re running a 24-hour sale or special promo, SMS is ideal to get the word out fast to your best customers. You can even make it SMS-exclusive for an extra VIP feel.
• Value-Add Content: Not every text has to sell something. Something like  “💪 Quick Tip: Drink 16oz of water before your workouts for better performance!” from a fitness brand shows you’re not just there to take their money, but also to provide value.

When scheduling campaigns, be mindful of timing and frequency (more on frequency in the Mistakes section). Since texts feel more urgent, you typically send them at times people can act immediately, like mid-morning or early evening, not 3 AM.

Write SMS Copy That Converts Without Noise

You’ve only got 160 characters (give or take, before it splits into multi-part messages) to get your point across. That means every word counts:

• Be Short and Sweet: For instance, “Hey [Name]! Your order is ready for pickup at [Store]. Show this text when you arrive 😊” is better than a verbose, formal message. Keep sentences brief. People skim texts quickly.
• Sound Like a Human: SMS is a personal channel, so have an informal tone as if you’re talking to a friend. Use “you” and maybe even first names if appropriate.
• Front-Load Value: Start the text with the most important info or hook. On many phone lock screens, you only see the first line of a text notification. Make it count. Don’t start with “Hi, [Brand] here,” they know it’s you. Instead: “Sale Alert: 50% off sitewide TODAY only! [Link]” grabs attention immediately.
• Include a Clear Call-to-Action (CTA): Every marketing text should prompt an action, from clicking a link to showing the text in-store. Make that CTA obvious and easy to do. For example: “👉 Shop now: [short link]” or “Reply Y to confirm” or “Show this text for your free gift.” Don’t assume they’ll know what to do; spell it out clearly.
• Use Urgency and Personalization (when appropriate): SMS is great for urgency (“Ends at midnight!” or “Only 3 spots left!”). Just be truthful and don’t overuse panic tactics.
• Mind the Legal Bits (Opt-Out Info): Best practice (and in some places, law) is to include an opt-out instruction somewhere in your texts, at least periodically. A simple "Text STOP to opt out” at the end of a promotional text keeps you compliant and reminds people they’re in control.

Choose Tools That Fit Your Tech Stack and Goals

Since you’re building from scratch, take time to research which SMS marketing software fits your needs:

• Automation and Segmentation Features: Make sure the tool supports the automated flows and segmentation you mapped out. Can it trigger on cart abandonment? Can it segment by purchase history or link click behavior? Look at what segmentation filters are available.
• Compliance Safeguards: Good SMS platforms help you stay compliant (e.g., managing opt-outs automatically and handling time-zone quiet hours). It’s nice when the tech has your back on the legal stuff so you don’t accidentally break rules.
• Analytics & Reporting: Look for tools that give clear analytics on delivery, click-through, conversion (often via integration with your site), unsubscribe rates, and revenue attribution. Since you’ll track KPIs, your platform should make that easy with dashboards or reports. You don’t want to manually cobble together stats.
• Extra Features: Think about any special features that align with your goals. Do you want to send MMS (images/GIFs are useful if you want to include visuals and maintain some brand design in your texts)? Do you need advanced link tracking or URL shortening?

What about AI content suggestions or optimal send time prediction? Make a wish list and see which platform checks the boxes.

Test, Track, and Optimize Every Send

Here’s how to approach it:

• A/B Test Campaigns: Many SMS platforms allow split testing. You could test different send times (e.g. morning vs. evening) to see when your audience is more responsive. Or test different wording of a CTA (“Buy Now” vs “Shop Sale”).
• Monitor Metrics and Look for Patterns: Did that flash sale text generate unusually high opt-outs? Maybe the offer or timing wasn’t right. Did a certain segment have an especially high click rate? Maybe you tapped into something that resonated that you can reuse. Keep an eye especially on CTR and opt-out as immediate feedback on your messages.
• Gather Feedback (Direct and Indirect): Sometimes the best insights come straight from subscribers. They might reply to your texts with questions or comments. If loads of people ask “Is this available in red?” in response to a promo text, perhaps your message wasn’t clear or you should include that info next time.
• You can even ask for feedback: “Was this tip useful? Reply 👍 or 👎.” Also watch for what customers say on social media or to your support team about your texts. Use all this to refine your approach.
• Scale What Works: When you discover something that really works, do more of it. If your “back in stock” alerts are getting huge responses, consider adding “low stock” alerts or more inventory-related texts. If an SMS-exclusive sale went crazy, plan them quarterly. Found that including an emoji or a GIF boosts engagement? Embrace it (within brand tone). Continually identify your “hits” and double down on them.

The main idea is to listen (to your data and your customers) and iterate. Even small gains (a 1% higher conversion here, 0.5% lower opt-out there) can add up to big wins over time. The more you refine, the more your SMS channel will shift from “just sending texts” to being a finely tuned revenue and engagement outlet.

SMS vs Email vs Push: Where Each Channel Wins

SMS isn’t the only direct channel. You’ve also got email marketing and push notifications (mobile app or browser push) as ways to reach people. Let’s compare them:

Reach & Deliverability

SMS arguably wins here. Virtually every text you send (to a valid number) is delivered straight to the recipient’s phone and usually read. Conversely, email can get caught in spam or just lost in someone’s inbox (average email open rates are around 20%).

Push notifications require the user to have your app installed (for mobile push) or to have allowed notifications (for web push). So while push can be very effective for those who have it, it’s inherently a smaller audience (only your app/web users).

Content Richness

Email marketing can be as long as you want, with:

• Full HTML design
• Images
• Links
• Detailed information

SMS is a lot more concise with plain text (aside from emojis or simple media if using MMS). You can include a link to more info, but the message itself has to be short.

Push notifications are also brief (usually a title and a line or two of text, sometimes an image). So email’s better if you need to convey a lot or showcase a lot of visuals. Use email for the heavy content and SMS or push for the tl;dr highlights and urgent nudges.

Cost & Frequency

Email is typically the cheapest channel. Sending an extra email has near-zero marginal cost if you’re on a flat-rate plan for your email platform. SMS costs accumulate per message, which can get expensive if you send frequently to a large list. Push notifications (through your own app or site) are usually free or very low-cost.

This means you can send emails more liberally, but you’ll be more selective with SMS to avoid high costs and subscriber irritation.

Also, audiences are a bit happier with higher email frequency (some might ignore or filter emails) but with SMS, too many texts will quickly lead to opt-outs.

Unsubscribe rates tend to jump once you exceed ~10-15 SMS per month, whereas daily emails might be okay for some brands. So, email is suited for ongoing engagement and drip campaigns, SMS for more spares, high-impact contacts.

Where Each Wins

SMS is best for when you need quick important communications that nearly everyone needs to see (e.g., “Your order is out for delivery” or “Sale ends tonight - last chance!”). It’s also fantastic for personal outreach and getting quick responses.

Email wins for detailed content and more cost-effective broad communication (e.g., lengthy newsletters or sending 5 different promotions a week).

Push notifications win for reaching your app users with timely nudges tied to app behavior (e.g., cart reminders in-app, or “your friend beat your score” in a game). And they’re free and instant.

How to Pair SMS With Your Full Marketing Funnel

You need to integrate it across your entire marketing funnel to get the most out of SMS:

Awareness Stage (Top of Funnel)

At this stage, prospects are just discovering your brand through channels like:

• Social media
• PR
• SEO content
• Paid search ads

SMS’s role here is limited because you can’t text someone who hasn’t opted in. But you can set the stage for future SMS contact.

For example, use campaigns and events to encourage SMS opt-ins early: run a contest on social media where entering requires texting a keyword to your number (new opt-in acquired!).

You can even use out-of-home marketing (billboards, flyers) with short codes (“Text BURGER to 55555 for a free fries coupon”). The goal in awareness is to start filling the top of your SMS funnel with people who show interest, so you can nurture them later.

Consideration Stage (Middle of Funnel)

• Engaging with content
• Browsing your site
• Following you on social media

This is a great time to use SMS to nurture them. If they’ve opted in, you can send helpful, trust-building texts: for example, a demo request could trigger an SMS confirmation and a “Here’s what to expect on your demo tomorrow - can’t wait to chat!” message.

If they viewed a product but didn’t buy (and you have their number from a previous opt-in), a gentle question via SMS like “Looking at our premium plan? Reply with any questions, we’re here to help 👍” can make them engage with you.

Also, pairing SMS with email here is powerful: say you send an email with a case study download, you could follow up a day later with a text: “Hi, just checking - did you find that guide useful? Let us know if you have any questions about how [Your Product] might work for you.” 

Conversion Stage (Bottom of Funnel)

This is where leads turn into customers (when they’re ready to make a purchase or decision). SMS can significantly boost conversion at this stage. The most obvious use case: abandoned cart texts.

If someone adds to cart and bails (and you have their number from a previous opt-in or checkout step), send a quick reminder: “Oops, you left something in your cart! Complete your order now and use code SAVE10 for 10% off: [link].”

These messages recover a lot of lost sales. Likewise, if you offer appointment-based services or sales calls, SMS reminders to show up or confirm can increase conversion rates (no-shows don’t convert!).

You can also coordinate SMS with broader campaigns: for instance, during a major sale, you might send an email in the morning with all the details and then an SMS “last chance” in the evening to everyone who hasn’t purchased yet. Remember, at conversion, urgency and simplicity win. SMS delivers both.

Retention Stage (Post-Purchase & Loyalty)

The funnel doesn’t end at purchase. Retaining customers and maximizing lifetime value is huge. SMS shines here by keeping the communication going in a friendly, non-intrusive way.

For example, immediately post-purchase, you could send a thank-you text or a quick tip on using the product (“Thanks for your purchase, Anna! Pro Tip: charge your device fully before first use for best results 🔋.”).

A week later, send a check-in: “How are you liking your [Product]? Reply and let us know - or if you need help, we’re here.” This encourages feedback and catches any issues early.

If you have a loyalty or VIP program, SMS is perfect for delivering those perks: “You’ve unlocked Gold Status! Use code GOLD20

You can also use SMS to solicit reviews or referrals: “Enjoying your order? We’d love a review! Tap [link] - it takes 1 minute. TY!” or “Refer a friend with code XYZ and you both get $10 off - share the love 💛”.

Here, SMS is complementing email newsletters and other retention tactics by adding that personal touch. It’s also great for transactional updates that double as marketing:

• Shipping notifications
• Back-in-stock alerts for items they showed interest in
• Exclusive invites (“Text subscribers get first dibs on our new drop - live now!”)

Common Mistakes That Undermine SMS Strategy Success

Let’s highlight a few of the most common mistakes that can mess up your SMS strategy:

How Top Brands Evolve Their SMS Strategy Over Time

Here are a few ways top brands step up their SMS game over time:

Start With Flows, Then Add Campaigns

In the early stages, many brands implement the essential automated flows first (welcome series, cart recovery, etc.) to get immediate wins. Initially, you might rely heavily on those “always-on” texts to drive engagement and baseline revenue.

But as your program matures, you’ll likely expand into more robust campaign planning. You go from sending only reactive messages (triggered by customer actions) to also sending proactive campaigns (brand-initiated texts on a schedule).

For example, once those flows are humming, you introduce a weekly or bi-weekly campaign: maybe a “Tuesday Tip” or a “Friday Flash Sale” text. Over time, SMS becomes a regular part of your marketing calendar, not just a background automation.

Move From Basic Segments to Predictive Targeting

Early on, you might keep segmentation simple. But top brands gradually layer in more sophisticated, data-driven targeting. As you collect more data, you can use it to make your SMS even more relevant.

One example: start using predictive analytics to anticipate customer behavior. Maybe you analyze that customers typically reorder a product every 60 days - so at day 50, you send a targeted “time to re-up?” text to those likely to run out soon. Or conversely, find those at risk of churning and hit them with a win-back text and special coupon.

As mentioned earlier, some advanced platforms have AI that can crunch data and find patterns. So as your program and data set grow, you can move beyond manual segments to more dynamic and predictive ones. It takes SMS from reactive marketing to proactive personalization.

Over time, each subscriber might get a slightly unique experience based on their behavior and predicted preferences.

Expand Into Conversational and 2-Way Messaging

When starting out, many SMS programs are one-directional: your brand sends out texts and customers only respond to opt out or maybe not at all. But top brands eventually open the channel for two-way conversations, which makes SMS more of a dialog.

This is often fueled by customer desire (people will reply to texts with questions even if you didn’t explicitly invite it), and brands see huge value in being responsive on this channel.

For example, what starts as a simple promo channel can evolve into an SMS concierge for your customers. Brands begin by allowing replies and having their support or sales team ready to answer.

You might notice more customers texting back things like “Can I get this in blue?” or “Is this valid on sale items?” And by answering, you not only help that customer convert, but you show a human side that builds loyalty.

Some brands even promote it: “Have questions? Just reply to this text - we’re here.” This can increase engagement and conversion (because people get their concerns addressed instantly).

Another advanced step is creating SMS-based communities or clubs. For example, a fitness coach might have a community number where followers can text in and get daily motivational texts or ask the coach questions. It’s essentially using SMS as a mini social network or forum, but more intimate.

The trend is clear: about 70% of customers want to be able to respond to business texts. And all the top brands oblige. This turns SMS from a marketing channel to a relationship channel.

Of course, going conversational does require resources (staff or AI to handle replies, training, etc.), so it often comes once a brand sees enough volume to justify it. But even small businesses can do this.

Final Takeaways

A few reminders to leave you with: always get permission before messaging, and keep your texts relevant to your audiences. Remember, they’re ‘VIPs’ who invited you in, so focus on quality over quantity.

All your texts should provide real value (from timely offers to useful info) rather than spamming. And always keep an eye on your data so you are ready to adjust.